Reddick Proposes $1 Room Tax

The Representative's Plan Is Markedly Different From The More Broad-based Proposals.

April 22, 1993|By Leslie Doolittle, of The Sentinel Staff

TAMPA — State Rep. Alzo Reddick stunned tourism leaders Wednesday by proposing a flat tax on lodgings to pay for economic development programs and tourism promotion.

Reddick's proposal at a Florida Tourism Commission meeting here was a departure from the commission's previous plans to impose a more broad-based tax on other areas of the industry, such as restaurants and attractions. Reddick is chairman of the House Committee on Tourism and Economic Development.

''The commission . . . is in a state of shock given that it has just received a proposal that is diametrically opposed to what it has been working on for years,'' said Hayward Benson Jr., executive vice president of Gray Line of Fort Lauderdale.

Reddick, D-Orlando, called for a $1 per night surcharge on hotel rooms, condo units and campground spaces. Forty percent of the estimated $80 million the tax would raise would go to tourism promotion. The remainder would support economic development.

''We cannot separate the economic well-being of the tourism industry from the well-being of the community as a whole,'' Reddick said.

Reddick said he made the proposal to end the commission's struggle to come up with a politically acceptable plan. Reddick insisted repeatedly that the commission's current proposals are doomed because of opposition from the politically powerful restaurant association and a lack of consensus within the tourism industry. Earlier plans proposed taxing restaurants.

The commission, which comprises tourism industry representatives, was formed last year to develop ideas for promoting Florida.

''This represents my (initial) effort in trying to move us down the road,'' Reddick said.

Hoteliers, some visibly angered, said it was unfair to single out their industry. Many counties already impose resort taxes on hotel and motel rooms and camping spaces.

''It's absolutely unfair,''said Tom Staed, president of Oceans 11 Resort in Daytona Beach Shores. ''What you are going to do is drive the smaller hotels out of business.''

At first, most commissioners seemed unwilling to accept Reddick's contention that their current tax plans would never make it through the Florida Legislature.

Later, members began focusing on ways to modify Reddick's proposal.

Commissioners clearly thought the success of such a plan depends on the willingness of the state's major attractions to shoulder some of the burden. They also agreed that if such a tax becomes reality, a larger percentage should go toward promoting tourism.

''I think something positive has happened,'' said John Hach, division vice president of the Hertz Corp. ''What the attractions industry has to say now is we are willing to pay our fair share.''

Commission chairman Bruce Nierenberg, president of Costa Cruise Lines, said he thought if the attractions agreed to pay its ''fair share,'' so would the cruise industry.